Delta vs Endeavor Which Is More Promising?

Delta and Endeavor are two prominent airlines in the US aviation industry, each with their own unique characteristics and market positions. Delta, a major carrier known for its extensive route network and strong brand recognition, has seen its stock perform relatively well in recent years. On the other hand, Endeavor, a regional airline that operates primarily under Delta's regional connection, has faced challenges in terms of stock performance due to its smaller scale and dependence on the larger carrier. In this analysis, we will delve into the key factors influencing the stock performance of both companies and explore potential investment opportunities.

Delta or Endeavor?

When comparing Delta and Endeavor, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Delta and Endeavor.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Delta has a dividend yield of 1.03%, while Endeavor has a dividend yield of 0.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Delta reports a 5-year dividend growth of 4.56% year and a payout ratio of 0.00%. On the other hand, Endeavor reports a 5-year dividend growth of 0.00% year and a payout ratio of -25.62%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Delta P/E ratio at 20.82 and Endeavor's P/E ratio at -15.68. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Delta P/B ratio is 1.27 while Endeavor's P/B ratio is 2.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Delta has seen a 5-year revenue growth of 0.17%, while Endeavor's is 0.40%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Delta's ROE at 6.26% and Endeavor's ROE at -13.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹120.10 for Delta and $30.62 for Endeavor. Over the past year, Delta's prices ranged from ₹104.45 to ₹159.80, with a yearly change of 52.99%. Endeavor's prices fluctuated between $22.75 and $30.82, with a yearly change of 35.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.